It is our passion at Charity Charge to provide financial tools, resources, and education to support the nonprofit community. Having already worked with and funded thousands of nonprofits nationwide, we are seeing first hand the impact that COVID-19 is having on the nonprofit community.
There are many programs that your nonprofit can take advantage of during these challenging times. Listed below you will find available programs with brief overviews and steps to apply. We highly recommend that you explore and apply for these programs as soon as possible as funding is limited.
As the only credit card program for nonprofits, Charity Charge provides lines of credit to nonprofits backed by Mastercard’s Zero Liability and ID Theft Protection. Amidst the current crisis, we have experienced a huge spike in nonprofits reaching out to us from across the nation looking to increase cash flow to provide a buffer through down times.
Above all else, we simply want you to know that we are here for you and that we will do everything in our power to aid your mission. In times of crisis, it is critical to the health of our communities that we come together and support one another.
Overview of programs and how to apply
1. Paycheck Protection Program
This is an emergency loan program to secure funds to retain workers and maintain payroll or make mortgage, lease, and utility payments for two months. This program offers nearly all nonprofits a loan for 2.5x your average monthly payroll expenses with no personal guarantee or collateral required. As long as your organization spends the loaned money on payroll, mortgage payments, rent and utilities, and you maintain your current number of employees, the entire loan amount can be forgiven, effectively converting it into a grant.
Applying for the Paycheck Protection Program
Nonprofits should first apply with the bank they have a pre-existing relationship with. Applications will more than likely be met on a first-come, first-served basis, so apply for the program with your SBA partnered bank the moment the application becomes available.
View and download the PPP Borrower Application Form found on the U.S. Department of Treasury’s website.
Lastly, while there are no official guidelines for what documents will be required to apply yet, be sure to have necessary documents on hand, such as:
- Calculation of your average payroll expense per month for the last 12 months
- Payroll Expense verification documents
- A document certifying that all employees live within the United States
- Most recent Mortgage Statement or Rent Statement
- Most recent Utility Bills
- 2019 Year-End Financial Statements
- 2020 Interim Financial Statements
2. Economic Injury Disaster Loan (EIDL)
This applies looser credit standards, with a rapid grant procedure to grant $10,000 within three days to cover nonprofit sick leave, meeting payroll, increased costs due to disrupted supply chain, mortgage, and debt service. This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available following a successful application. This loan advance will not have to be repaid.
Click here to apply.
3. SBA Express Bridge Loans
This loan allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loan or used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan. If a small business has an urgent need for cash while waiting for the decision and disbursement of an Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan.
4. Economic Stabilization Fund for Mid-Sized Businesses
Sets aside $454 billion for “eligible business” which is defined as “a United States business that has not otherwise received economic relief in the form of loans or loan guarantees provided under” the legislation. Mid-sized nonprofits and businesses that have between 500 and 10,000 employees are eligible for loans under this provision. Although there is no loan forgiveness provision in this section, the loans would be charged an interest rate of no higher than two percent and would not accrue interest for the first six months.
5. Charity Charge Nonprofit Business Card
Charity Charge was formed as a social enterprise to help fund nonprofits. We designed the Charity Charge Nonprofit Business Mastercard specifically with the needs of nonprofits in mind with no expensive annual fees. These features help to increase your organization’s available cash. Currently, we are offering emergency lines of credit and fast tracking applications for new nonprofit clients. If eligible, credit is underwritten to the organization (not an individual), providing a boost in unrestricted funds so you can stay focused on your mission. To date, we work with thousands of organizations, ranging from $5,000 to $500 million in revenue and we would be honored to serve your nonprofit through this current crisis.
Click here to request an application.
6. Facebook Grants
Facebook is offering $100M in cash grants and ad credits to help small businesses and nonprofits affected by COVID-19. Up to 30,000 eligible small businesses in more than 30 countries where Facebook operates will be able to receive the grant. To be eligible to apply, you must:
- Have between 2 and 50 employees
- Have been in business for over a year
- Have experienced challenges from COVID-19
- Be in or near a location where Facebook operates
7. CenterPoint Energy Grants
The CenterPoint Energy Foundation will contribute $1.5 million to nonprofit organizations, agencies and causes that are committed to supporting those who have been disproportionately impacted by COVID-19. CenterPoint Energy’s COVID-19 Relief Fund will include $1 million in direct contributions, as well as up to $500,000 in matching gifts for employees’ contributions to qualifying 501(c)3 organizations.
Foundation contributions will go to organizations who are responding to the COVID-19 crisis and supporting vulnerable and at-risk populations.
Qualifying nonprofit organizations in CenterPoint Energy’s utility footprint of Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma, Texas will be eligible to receive grants.
Click here to apply.
SBA Emergency Loan FAQs:
Will the PPP and EIDL loans be forgiven?
A borrower is eligible for loan forgiveness equal to the amount the borrower spent on the following items during the 8-week period beginning on the date of the origination of the loan:
- Payroll costs
- Interest on a mortgage obligation
- Rent on a leasing agreement
- Payments on utilities
How can I request loan forgiveness?
You can submit a request to the lender that is servicing the loan. The request will include documents that verify the number of full-time equivalent employees and pay rates, as well as your payments on eligible mortgage, lease, and utility obligations. You must certify that the documents are true and that you used the forgiveness amount to keep employees and make eligible mortgage interest, rent, and utility payments.
What information do I need for a Small Business Administration loan?
To apply, you must submit the online application and provide a copy of IRS Form 4506-T, which gives the IRS the authority to pass your tax information on to the Small Business Administration.
Is it possible for the amount of loan forgiveness to be reduced?
The amount of loan forgiveness can be reduced if there is a reduction in the number of employees or a reduction of greater than 25% in wages paid to employees.
How long does the Paycheck Protection Program last?
The program is open until June 30, 2020 as it is intended for immediate payroll relief for your business or nonprofit.
What are the details behind Small Business Administration loans?
Loan amounts will be based on actual economic injury and a company’s financial needs and can be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses and 2.75% for nonprofits. These loans have a long-term repayment of up to 30 years, with terms based on the situation of the borrower.
How long will this program last?
Although the program is open until June 30, 2020, we encourage you to apply as quickly as you can because there is a funding cap and lenders need time to process your loan.
CARES Act Summary
On March 27, the President signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a $2 trillion economic stimulus law intended to provide immediate relief for individuals, nonprofits, businesses, and state and local governments.
SBA Program Eligibility
- A 501(c)3 nonprofit or 501(c)(19) veterans organization with less than 500 employees
- In operation and paying staff as of 2/15/2020
- Certify in good faith that the “uncertainty of current conditions makes the loan request necessary to support ongoing operations”
- Fact Sheet for Borrowers from the U.S. Treasury
- US Chamber of Commerce 4-Page Guide
- A Law Firm’s Perspective on the details of the PPP
- An Accounting Firm’s Perspective on PPP
- The SBA Page on the Program
- The Full Text of the CARES Act
- Section-by-Section Summary of the CARES Act
- EIDL and PPP FAQ for Churches
- Community Foundation Funds by State